The Supreme Court has imposed an interim stay on an order of consumer commission NCDRC directing German automobile company BMW to compensate a customer by replacing his vehicle with a new one after it got damaged in an accident.

A bench headed by Justice D Y Chandrachud issued notices to the customer, Dassault Systemes India Private Limited, Bajaj Allianz General Insurance Company Limited, Bird Automotive Pvt Ltd and sought their replies.

There shall be an interim stay of the judgment and order of the National Consumer Disputes Redressal Commission (NCDRC) dated 10 December 2019, pending further orders… List the Special Leave Petitions for final disposal after four weeks, said the bench also comprising Justices Indu Malhotra and K M Joseph.

The apex court was hearing an appeal filed by BMW challenging the NCDRC order.

NCDRC on December 10, 2019 directed BMW to compensate a customer by replacing his vehicle with a new one of the same model after it got damaged in an accident.

It asked Bajaj Allianz and BMW to compensate the loss incurred by a Delhi resident Mukul Aggarwal after the vehicle, which was insured under the BMW Secure policy, met with an accident.

Under the BMW Secure policy, a damaged vehicle is replaced with a new one upon confirmation of total loss of vehicle by a survey report.

The NCDRC also asked the company to pay Aggarwal all the expenses incurred, including the registration, road tax and logistics charges paid by him.

The commission, while upholding the state commission’s order, dismissed the review pleas filed by BMW and the insurance company, holding it guilty of deficient service for repudiating Aggarwal’s claim, which was made after his vehicle got badly damaged in an accident in July 2012.

“Now, since it has been held that the repudiation of the claim by the insurance company (Bajaj Allianz) was wrong and amounted to deficiency in service, under the BMW secure policy, the complainants are entitled for a new car from the appellant,” the NCDRC said in its order.